Guyana’s economy recorded a growth rate of 14.5% in the first half of this year, with the oil sector fueling the majority of that growth.

In its mid-year report, the Ministry of Finance indicated that while overall growth for the first six months of this year stands at 14.5%, the non-oil economy recorded growth of 4.8%.

The devastating floods across the country earlier this year and the ongoing impact of the COVID-19 pandemic are being blamed for several non-oil sectors not performing well.

According to the Finance Ministry, the effects of the floods and the pandemic have also spilled over into the second half of the year.

“Due to the unprecedented floods which impacted particularly the agriculture, forestry and mining sectors, along with the lingering effects of the COVID-19 pandemic, the effects of which will spill over into the last half of the year and even beyond, the revised full-year forecast for real GDP growth in 2021 is now 19.5 percent overall and 3.7 percent for the non-oil economy”, the statement said.

The mid-year finance report noted that the agriculture, forestry and fishing industries have contracted by 2.4 percent compared with a decline of 4.1 percent for the corresponding period last year.

In the sugar sector, production was affected by the high levels of rainfall which resulted in a decline of 22.4 percent in the first half of the year when compared to the same period in 2020.

“Some of the reasons indicated were a 30 percent mortality of mature cane at Albion estate, 10 percent at Uitvlugt and 5 percent at Blairmont due to the floods. Another 15,000 tonnes of sugar in the second crop were also expected to be lost, based on the Report”, the report found

The rice sector saw growth of 7.8 percent in the first half of the year, marginally lower than the target set for the period.

Production of ‘other crops’ declined by 7.3 percent due to the floods and the livestock industry was estimated to have grown by 10.6 percent when compared to the same period in 2020.

However, for that same period, the fishing industry contracted by an estimated 6.6 percent and the forestry industry by 7.1 percent.

The mining and quarrying industries were estimated to have grown by 23.1 percent, with higher output from the petroleum and other mining industries despite contractions in gold and bauxite.

The mid-year report found that total output from the petroleum sector increased by 65.4 percent when compared to the same period last year.

The manufacturing sector saw an estimated growth of 13.1 percent when compared to the same period last year with the expansion of the sector being attributed to a growth of 23.1 percent in other manufacturing.

The construction sector saw growth of 25.5 percent in the first half of 2021.

The Finance Ministry believes that growth is a result of increased public and private sector partnerships.

The Finance Minister has stated that the favourable economic performance at the end of the first half of 2021 in the non-oil economy bodes well for the upcoming second half of 2021 and beyond.

“It is expected that advances in key investments, both in the public and the private sector, will buttress the second-half performance of the economy”.

The mid-year report will be laid in the National Assembly when the Assembly reconvenes.

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